Author Subject Theories Results
Zhou Coordination costs - Portfolio theory: higher leverage ratio - Existing business more complex
and related implies greater risk and is correlated less likely to diversify
diversification with more diversification - Able to share more inputs with the
- Agency theory: higher level of new business less likely to
supervision will lead to less diversify
diversification - Coordination costs rise
- Input sharing as a source of dramatically when coordination
synergistic gains and coordination costs demand approaches its coordination
- Input indivisibility: unable to be capacity
divided or separated
Hashai Within-industry - Population ecology: first liability of - Low level WID: negative
diversification newness, then performance increase, performance (adjustment costs)
(WID) and firm then liability of aging - Moderate level WID: positive
performance - Industry life-cycle: low demand, high performance
demand, low demand - High level WID: negative
- Time compression diseconomies: performance (coordination costs)
additional costs of quickly trying to - Greater WID change rate:
reach a given level of asset stock negatively related to performance
- Non-scale free resources: resources
whose use for a specific task comes at
the expense of another implies the
existence of opportunities costs
Stettner Exploration vs - Ambidexterity - Balance within mode: negative
& Lavie Exploitation - Different forms of separation: performance
- temporal: transition over time between - Balance across modes: positive
E&E performance
- organizational: simultaneous E&E in - Balance across modes is better than
units balance within modes
- Across different organizational - Exploration external (A&A) and
modes: internal organisation, alliances exploitation internal (internal org.)
and acquisitions
- not balance within because±
conflicting routines, negative transfer,
and limited specialization.
Moeen Alliances and - Pre-entry stage: acquire resources and - alliances for technical capabilities
& acquisitions for
Zhou Coordination costs - Portfolio theory: higher leverage ratio - Existing business more complex
and related implies greater risk and is correlated less likely to diversify
diversification with more diversification - Able to share more inputs with the
- Agency theory: higher level of new business less likely to
supervision will lead to less diversify
diversification - Coordination costs rise
- Input sharing as a source of dramatically when coordination
synergistic gains and coordination costs demand approaches its coordination
- Input indivisibility: unable to be capacity
divided or separated
Hashai Within-industry - Population ecology: first liability of - Low level WID: negative
diversification newness, then performance increase, performance (adjustment costs)
(WID) and firm then liability of aging - Moderate level WID: positive
performance - Industry life-cycle: low demand, high performance
demand, low demand - High level WID: negative
- Time compression diseconomies: performance (coordination costs)
additional costs of quickly trying to - Greater WID change rate:
reach a given level of asset stock negatively related to performance
- Non-scale free resources: resources
whose use for a specific task comes at
the expense of another implies the
existence of opportunities costs
Stettner Exploration vs - Ambidexterity - Balance within mode: negative
& Lavie Exploitation - Different forms of separation: performance
- temporal: transition over time between - Balance across modes: positive
E&E performance
- organizational: simultaneous E&E in - Balance across modes is better than
units balance within modes
- Across different organizational - Exploration external (A&A) and
modes: internal organisation, alliances exploitation internal (internal org.)
and acquisitions
- not balance within because±
conflicting routines, negative transfer,
and limited specialization.
Moeen Alliances and - Pre-entry stage: acquire resources and - alliances for technical capabilities
& acquisitions for
